Truist Financial Intrinsic Value Calculator – Truist Financial Cuts 5% of Investment Banking Unit as Dealmaking Slows in Uncertain Market

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Truist Financial Intrinsic Value Calculator – Truist Financial ($NYSE:TFC) Corporation (TFC) is a leading financial services holding company based in Charlotte, North Carolina. The combined company is the sixth-largest bank in the United States by assets. TFC’s investment-banking unit is reported by Bloomberg to have had a 5% workforce cut as the market volatility and economic outlook remain uncertain, leading to a slump in dealmaking. This follows the trend of Goldman Sachs, Morgan Stanley and Deutsche Bank who have all been reducing staff in recent months. The capital markets activity and merger and acquisition fees have seen a sharp decline, resulting in TFC’s investment-banking and trading income falling 32% to $257M in Q4 year-on-year. The pandemic has had a major impact on the global economy, with businesses closing, investments being halted and jobs being lost. This has caused financial markets to become increasingly volatile, leading to a decrease in dealmaking activity as investors attempt to reduce their risk exposure.

As a result, financial institutions such as TFC have been feeling the strain and have had to make difficult decisions in order to weather the storm. TFC’s decision to reduce its investment banking unit is a direct result of the uncertain market conditions, with the bank looking to adjust its cost structure accordingly. It is thought that TFC’s cuts are part of a wider trend amongst large banks, as they look to reduce their expenses and consolidate their operations. Although it is likely that the market conditions will improve in the near future, it is clear that banks are being cautious in the current environment. Overall, TFC’s decision to cut 5% of its investment banking unit is a necessary response to the market conditions created by the pandemic. As uncertainty continues to reign over global markets, it is likely that more banks will follow suit in order to protect their balance sheets.

Share Price

On Tuesday, TRUIST FINANCIAL opened at $49.2 and closed at $50.0, up 0.9% from a prior closing price of 49.6. The company has announced that it will be cutting 5% of its Investment Banking unit as dealmaking slows in an uncertain market. This news was met with mixed reactions from the financial world, as some analysts saw the move as a sign of fiscal prudence, while others saw it as a sign of caution about the current market. The move by TRUIST FINANCIAL is part of a larger trend in the financial sector, where companies are increasingly cautious about making investments and taking on additional risks. While the market is still relatively strong, there is an overall sense of uncertainty due to changing global economic conditions, political instability, and other factors.

This is making many companies, including TRUIST FINANCIAL, hesitant to make any large investments or deals until they have a better understanding of the market conditions. TRUIST FINANCIAL’s decision to cut 5% of its Investment Banking unit is a prudent one and shows that the company is taking the current market into account when making decisions. It is likely that other companies in the financial sector will follow suit in the coming months as they look to save costs and limit their exposure to risk. Live Quote…

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Truist Financial. More…

Key Ratios Snapshot

Some of the financial key ratios for Truist Financial are shown below. More…

Analysis – Truist Financial Intrinsic Value Calculator

GoodWhale recently conducted an analysis of TRUIST FINANCIAL‘s fundamentals and found that its intrinsic value is around $51.6. This value was calculated using GoodWhale’s proprietary Valuation Line. The analysis conducted by GoodWhale looked at factors such as the company’s financial performance, market conditions and overall economic environment to determine the intrinsic value of the stock. The research also considered factors such as the company’s competitive position, management quality and growth potential. TRUIST FINANCIAL has a strong balance sheet with solid financials, indicating that the stock is a good long-term investment. The company is well-positioned to capitalize on the current market conditions and should be able to maintain its competitive position in the future. Additionally, the company has a strong management team that is committed to driving growth and creating value for shareholders. In conclusion, GoodWhale’s analysis suggests that TRUIST FINANCIAL is currently undervalued at its current price of $50.0 and investors should consider buying the stock at this price. The stock has a strong balance sheet, good financials, a strong management team and is well-positioned to capitalize on the current market conditions. Therefore, it is a good long-term investment that should create value for shareholders in the future. More…

Peers

Truist Financial Corp is a large financial institution that offers a variety of banking and financial services to its customers. Its competitors include Public Bank Bhd, Bandhan Bank Ltd, and Bank of Georgia Group PLC.

– Public Bank Bhd ($KLSE:1295)

Public Bank Bhd is a Malaysian bank holding company. It was founded in 1966 and is headquartered in Kuala Lumpur. The company provides banking and financial services to individuals, businesses, and governments in Malaysia, Singapore, Cambodia, and Vietnam. Public Bank Bhd has a market cap of 84.24B as of 2022. The company’s main business activities are deposit-taking, loan and financing, foreign exchange, money market and treasury operations, and other related services.

– Bandhan Bank Ltd ($BSE:541153)

Bandhan Bank Ltd is an Indian banking and financial services company headquartered in Kolkata, West Bengal. It was founded in 2001 by Chandra Shekhar Ghosh. As of March 2019, the bank had 9,421 branches and 13,958 ATMs across 2,764 cities in India. Bandhan Bank offers banking products and services including savings and deposit accounts, loans, debit and credit cards, money transfer, and insurance. The bank had a market capitalization of 432.67 billion as of March 2019.

– Bank of Georgia Group PLC ($LSE:BGEO)

Bank of Georgia Group PLC is a leading banking group in Georgia, offering a wide range of banking and financial services to individuals, businesses and corporate clients. The Group has a significant market share in deposits, loans, credit cards and other key banking indicators. It is also the largest non-bank financial institution in the country. The Group employs around 4,000 people and serves over 1.5 million customers through a network of 97 branches and 202 ATMs across Georgia.

Summary

TRUIST Financial recently announced a 5% reduction in jobs from its Investment Banking Unit due to the current slowing of dealmaking in the uncertain market. This decision reflects the difficult economic environment, which has created a challenging situation for investors. Despite this, TRUIST Financial remains committed to providing its clients with the best possible advice and services.

The company will continue to deliver comprehensive advice and solutions to its investment banking customers to help them navigate the ever-changing financial markets. TRUIST Financial also remains committed to long-term investments and the continued success of its clients.